U.S. stocks closed higher on Tuesday, with the tech-heavy Nasdaq Composite leading the gains, rising 1.2% to 26,477 points. The S&P 500 increased by 0.6% to 7,722 points, and the Dow Jones Industrial Average rose 0.03% to 52,377 points. The market was primarily boosted by AI momentum and optimism surrounding the third-quarter earnings season. News that Anthropic is nearing an initial public offering drove chip stocks higher for a third consecutive trading day. Economic data showed an increase in new orders for computers and peripheral equipment, further supporting strong AI-related spending. Meta's stock fell 1.6% after the company increased its largest-ever equity financing to $97.5 billion to fund its AI expansion.

The third-quarter earnings season is progressing well, with nearly half of S&P 500 companies having reported results, and 83% exceeding expectations. In individual stock news, Boeing fell 10.7% due to a larger-than-expected third-quarter loss, and Xylem dropped 14.2% after lowering its full-year forecast. United Parcel Service rose 5.8% after raising its annual revenue and profit forecasts, and Royal Caribbean gained 5.5% after increasing its full-year profit outlook. Sherwin-Williams fell 2.7% as its quarterly profit missed expectations. Earnings reports for Microsoft and Google are expected on Wednesday, with Amazon scheduled for Thursday.

The Federal Reserve held its second-to-last monetary policy meeting of the year on Tuesday. The market widely expects interest rates to be maintained in the 3.75%-4% range, with a second rate hike anticipated in December.